Proponents of arms control and disarmament are often confronted with the argument that reductions in defense expenditure lead to cutbacks in military industries and thus to economic hardship. While a reduction in defense production would cause some economic dislocation, this would be mitigated by the ability of the economy to adapt to changing patterns of production. This book, first published in 1983, assesses the likely effects of reductions in defense industries by an examination of the roles these industries play in national economies. Each chapter discusses industry employment, output, research and development, capital value, profitability, concentration and competition, internal organization and regional employment concentration. Other questions considered include the economic importance of weapons exports, the defense industry as a ‘leading edge’ in maintaining national technological capabilities, and the reliance of individual firms on defense contracting.

Realistic appraisal of Soviet defence efforts is crucial to strategic planning and foreign policy analysis. Since Soviet defence expenditure figures are incomplete, however, our knowledge in this area is extremely limited. This study reviews the state of current knowledge in this field, and presents a critical review of the nature and limitation of traditional approaches. The contributors analyse newly available sources of economic, scientific, and technical military information, and conclude with an in-depth consideration of the relevance and impact of historical and cultural influences on current Russian-Soviet military strategy. There emerges a fascinating account, which both extends our knowledge and understanding, and sheds light on what is perhaps the single most important 'unknown' in the study of international affairs and defence needs.